We Can't Bail Out Ghana Air Now - Government

The Government says it can not take any action on Ghana Airways Company until a report on a forensic audit ordered into the affairs of the national carrier was submitted.

"It is important for government to have all the facts about the condition of the airline, its operations and management practices before any decision can be taken by Cabinet," Dr Anthony Akoto-Osei, Special Advisor to the Minister of Finance told the Ghana News Agency.

He said Cabinet could not take any decision with what he said was "one-sided information and appeals from the management of the company. Dr Akoto-Osei was speaking about government's plans to salvage the distressed airline and management's concerns about its support. Ghanair is indebted to a tune of about 150 million dollars of which six million dollars is owed to the Ghana Civil Aviation Authority (GCAA).

Ghana Airways contributes about 30 per cent of GCAA's annual revenue and its indebtedness was due to its inability to pay airport passenger service charges collected on behalf of GCAA and aeronautical charges levied on its operations.

A Ghanair flight to New York was stalled recently in Dakar, Senegal for non-payment of arrears of three billion CFA Francs to a French aeronautical company. Dr Akoto said "the report of the forensic audit must be ready and available so that when government has to go to Parliament to request for a loan, it has sound basis for any argument for the company."

He said he was not happy that the management of Ghanair was taking up the role of its Board in telling government what and how Ghanair problems should be handled. Dr Akoto-Osei said the Ghanaian economy could not support a US or Europe-like bail out. "That means we have to go back to tax the taxpayer some more and this cannot be."

The GNA, investigations by revealed that the audit was to be completed over a two-week period. Dr Akoto-Osei said Ghana Airways needed a new management to ensure that any injection of capital could be properly and efficiently utilised for maximum returns.

Ghanair needs about 120 million-dollars to turn its fortunes around, he said. "This is huge and the government might not be able to provide that much. However, there is a grand plan to bring the airline back into profitable operations," he added.